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Posted
16 minutes ago, Bozo_Casanova said:

Do you think the city needs an independent audit?

I think whoever approved those charges should be strung up. Sounds like it was easy enough to recognize something was fishy. We must have hired Tim Walz. 

Posted
31 minutes ago, Deej said:

I think whoever approved those charges should be strung up. Sounds like it was easy enough to recognize something was fishy. We must have hired Tim Walz. 

Well it was found, that’s good. Do you think private utilities (or private companies in general) have better expense controls in place? 

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Posted
1 hour ago, Bozo_Casanova said:

Well it was found, that’s good. Do you think private utilities (or private companies in general) have better expense controls in place? 

How much never gets found? City of Austin is one giant house of grift, and you apparently have to be really stupid to get caught. It sounds from the article that this should have been stopped much earlier on because it was so obvious, but hey, they got caught eventually. Good work, good job everyone! 

Posted
2 hours ago, Bozo_Casanova said:

 Do you think private utilities (or private companies in general) have better expense controls in place? 

It's the very lowest of bars, as in Procurement 101, to have a PO process in place, allowing for simple questioning on whether the transaction is a legitimate expense and especially so when the invoices presented for payment weren't really invoices at all and also, as a convenient side note, invoices that totaled 10's of thousands of dollars. You'd have to fall off the stupid truck, get back on it, and fall off it again to  say "Yeah, these invoices are good for payment."  In what world were these people ever given managerial responsibilities that included the ability to approve expenditures? Dear lord. 

Yeah, most private companies have better controls in place. It doesn't take much, some simple competency and processes as, again, it's a very low bar that's required to have  ID'd these things from the get-go. 

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Posted
8 hours ago, Wally Pryor said:

It's the very lowest of bars, as in Procurement 101, to have a PO process in place, allowing for simple questioning on whether the transaction is a legitimate expense and especially so when the invoices presented for payment weren't really invoices at all and also, as a convenient side note, invoices that totaled 10's of thousands of dollars

Agree

8 hours ago, Wally Pryor said:

Yeah, most private companies have better controls in place.

Strongly disagree.
 

52 minutes ago, Wilcox Cummingtonite said:

Nice strawman. You fucking people.

That’s not a strawman. But, by “you people” do you mean people who know what they are talking about?  Dude, Austin has all kinds of problems, but is no more administratively “wasteful” than any complex, comparably sized enterprise. The policy side is a big problem, but that’s because nobody good runs for office and in general our citizen are indifferent about it. 

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Posted

Having worked for City, State, and Private Sectors, I can guarantee you this is a lot bigger than just poor oversight.  Most major corporations have a procurement department that vets vendors before the first check goes out the door.  The state went even further to ensure they're dealing with vendors that checked the HUB boxes if possible.  They get tax information, verify financials, etc., to ensure they're not getting into business with a crooked vendor and avoid any questionable transactions.  This ABSOLUTELY stinks of corruption and lack of basic oversight.  Again, filling out expense reports SHOULD have thrown a red flag years ago if the management chain was actually reviewing them, but it sounds like he (and his wife) found ways to exploit laziness from the top down.

Procurement departments are some of the most pedantic and detail oriented assholes next to lawyers.

Posted (edited)
15 hours ago, Bozo_Casanova said:

Well it was found, that’s good. Do you think private utilities (or private companies in general) have better expense controls in place? 

A for-profit entity, comparable in size and scope (~14,000 employees, $6 billion in spending per year)?  Absolutely.  They would have public debt/equity and their internal controls, not just their financials, would be audited by a big 4 firm.  

Edited by bschoolprof
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Posted
42 minutes ago, bschoolprof said:

A for-profit entity, comparable in size and scope (~14,000 employees, $6 billion in spending per year)?  Absolutely.  They would have public debt/equity and their internal controls, not just their financials, would be audited by a big 4 firm.  

Comparable in size doesn't matter. The vast majority of entities don't have management who are going to approve and pay tens of thousands of dollars toward pieces of paper somehow masquerading as invoices. it's laughable to think that's the norm in the business world v. (rare) exception.  We have our share of stupidity and / or laziness in the country but it doesn't run that rampant, at least when it comes to supervisory levels entrusted with a very simply task of identifying an authentic business expense. It's not that hard if you have (even somewhat) legitimate management skills vs. whatever these CoA employees are portraying to have. 

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Posted (edited)
3 hours ago, PvilleStang said:

This ABSOLUTELY stinks of corruption and lack of basic oversight.  Again, filling out expense reports SHOULD have thrown a red flag years ago if the management chain was actually reviewing them

Tell me you’re unfamiliar with expense report handling in large organizations without telling me you’re  unfamiliar with expense report handing in large organizations.

Edited by Bozo_Casanova
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Posted
1 hour ago, bschoolprof said:

A for-profit entity, comparable in size and scope (~14,000 employees, $6 billion in spending per year)?  Absolutely.  They would have public debt/equity and their internal controls, not just their financials, would be audited by a big 4 firm.  

They would!* And Austin Energy is audited, just as every other enterprise is, and the auditors found this among other things. 
 

 

*unless they were problematic and couldn’t hire auditor. 

22 minutes ago, Wally Pryor said:

Comparable in size doesn't matter. The vast majority of entities don't have management who are going to approve and pay tens of thousands of dollars toward pieces of paper somehow masquerading as invoices.

Dude.

Posted (edited)
28 minutes ago, Bozo_Casanova said:

They would!* And Austin Energy is audited, just as every other enterprise is, and the auditors found this among other things. 
 

 

*unless they were problematic and couldn’t hire auditor

No - they didn't. It was discovered by a supervisor at Austin energy after she replaced whoever the previous dipshit was. 

And you're right - the city of Austin is audited. By themselves. 

Quote

 

One of the managers provided a written statement, which was included in the report. She said in it that she flagged the potential misuse of credit cards in June 2022, around 10 days after the specialist’s previous supervisor retired.

“Between May 2022 and October 2023 I experienced rapid role changes with expanding oversight,” reads a section of her statement. “I reported potentials issues to my superiors … outlining policy violations and weak purchasing controls. I sent written instructions to staff reinforcing City policy related to contracts, credit card use, and vendor spending to stay below City Council approved thresholds.”

 

 

Edited by ztejas
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Posted (edited)
26 minutes ago, ztejas said:

No - they didn't. It was discovered by a supervisor at Austin energy after she replaced whoever the previous dipshit was. 

And you're right - the city of Austin is audited. By themselves. 

The city auditors office in Austin does a good job.
 

It’s funny how, in every city in America, all the sharp pencil boys who never spent a minute near city hall will  always point to the work of city auditors offices to justify external consultant giveaways.

Edited by Bozo_Casanova
Posted (edited)
31 minutes ago, ztejas said:

One of the managers provided a written statement, which was included in the report. She said in it that she flagged the potential misuse of credit cards in June 2022, around 10 days after the specialist’s previous supervisor retired.

“Between May 2022 and October 2023 I experienced rapid role changes with expanding oversight,” reads a section of her statement. “I reported potentials issues to my superiors … outlining policy violations and weak purchasing controls. I sent written instructions to staff reinforcing City policy related to contracts, credit card use, and vendor spending to stay below City Council approved thresholds.”

And well done by her

Edited by Bozo_Casanova
  • Like 1
Posted
6 hours ago, Bozo_Casanova said:

Pure fantasy. The truth is far sadder but also boring: Austin isn’t corrupt. It’s just dumb, because the people don’t care.

Hey, don’t be so hard on yourself.  We think you care.

Posted
19 hours ago, Bozo_Casanova said:

Do you think the city needs an independent audit?

As of this morning the Mayor does.  Crazy things happen when the CM / city council suddenly get interested in "regaining the city's trust", or whatever is on their business cards now. 

 

Quote

AUSTIN (KXAN) — Austin Mayor Kirk Watson announced Wednesday he has initiated a process that could force the city to pursue an “independent… citywide process for auditing.” He hopes to have a city ordinance approved by no later than February.

https://www.kxan.com/news/local/austin/austin-mayor-proposes-independent-system-wide-city-audit-ordinance/

 

Posted
1 minute ago, Wally Pryor said:

As of this morning the Mayor does.

The mayor is welcome to his opinion. The mayor also got behind moving 130 east from its originally proposed location as a 35 bypass when the politics were pushed that way. Lotta money to be made on an  external audit (other than the annual financial one Deloitte does already which of course, you all have read).
 

 

Posted
3 hours ago, Bozo_Casanova said:

Tell me you’re unfamiliar with expense report handling in large organizations without telling me you’re  unfamiliar with expense report handing in large organizations.

I've worked in all scales, and unfortunately am EXTREMELY aware how this shit works.  But go on, make your teenage quips to make yourself feel better...

Posted
4 hours ago, Bozo_Casanova said:

They would!* And Austin Energy is audited, just as every other enterprise is, 

You are out of your element Donny. Deloitte did not audit internal controls for the city, like vendor payments. Public companies have to get internal control audits, not just financial statement audits.

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Posted (edited)
1 hour ago, bschoolprof said:

You are out of your element Donny. Deloitte did not audit internal controls for the city, like vendor payments. Public companies have to get internal control audits, not just financial statement audits.

Sigh. Yes, as anyone can infer from my posts I am well aware that Deloitte audits financial statements and does not duplicate the work of the city Auditor. Jesus you people. Go fucking volunteer for something and serve the public. you'll learn something. 

Edited by Bozo_Casanova
Posted
38 minutes ago, Bozo_Casanova said:

Sigh. Yes, as anyone can infer from my posts I am well aware that Deloitte audits financial statements and does not duplicate the work of the city Auditor. Jesus you people. Go fucking volunteer for something and serve the public. you'll learn something. 

jesus fucking christ dude, you don't know half as much as you think you do.  Deloitte audits internal controls. Of medium to large public companies. You implied arrogantly that a similar private enterprise would not have better controls, and you are full of shit, your retort to which is for us to volunteer.  ok.  

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Posted
2 hours ago, Eskimohorn said:

I didn’t sign up for this site to read people bicker about the efficacy of internal control consultants.

Oh, wait until you see the actuaries fight. Then you'll see some shit.

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